Important Notices

Effective Monday, April 5, 2010

FHA is increasing the Up Front Mortgage Insurance Premium from 1.75 percent to 2.25 percent on all FHA loans for which the case number is assigned on or after April 5, 2010. CHFA will require the FHA Case Number Assignment to be included in all Compliance files submitted for review. Any files submitted without the Case Number Assignment will be suspended and will result in approval delays.

The Compliance Submission Vouchers have been updated to reflect this requirement.

Please make sure to use the most recent version of all CHFA documents which are available on CHFA's website or through HomeConnection^sm.

Effective immediately

GFE cure payments to Borrower

Please remember that CHFA does not permit the Borrower to receive any cash back at closing. Should the HUD-1 show any "cash to the Borrower" on line 303, these funds must be forwarded to CHFA to be applied as a principal reduction on the First Mortgage Loan. CHFA has confirmed with HUD that if the Lender must refund the Borrower money to cure a tolerance violation, a principal reduction payment to CHFA is allowable under RESPA.

Properties that are in a Leasehold or Land Trust or have an Affordable Housing Covenant or Deed Restriction

If the Property is in a Leasehold or Land Trust, or the Property is subject to a Deed Restriction or Affordable Housing Covenant, then the Property or project must first be approved by the insurer or guarantor (e.g. FHA, Fannie Mae [for conventional uninsured loans], RD or VA). Written evidence of that approval must be submitted to CHFA in the Compliance file or the file will be suspended and will result in approval delays.

If the Borrower is also requesting a CHFA Second Mortgage Loan, then CHFA's Legal Division must also review and approve the form of Leasehold, Land Trust, Deed Restriction, or Affordable Housing Covenant to assure there is no language that supersedes the priority of either the CHFA First or Second Deed of Trust. If the property is a condominium, a copy of the recorded CC&Rs (Condominium Covenants and Restrictions) must also be reviewed.

Please contact us with any questions.

303.297.7376 or 1.888.320.3688 Denver
970.241.2341 or 1.800.877.8450 Western Slope

Thank you,
CHFA Home Finance